Testing is a hugely interesting topic for some, mainly developers, looking to develop some intuition about how a particular piece of software works to integrate into their use case. It is very helpful, therefore, that Bitcoin provides access to a ‘Testnet’ for the transmission and spending of transactions in a sandbox where Bitcoin Testcoins have no real value.

As this is hugely beneficial for normal Bitcoin developers, we at Mastercoin also realized the huge benefit for the developer community if we were able to send TestNet transactions in Mastercoin, which would reduce the cost to develop on our infrastructure.

Without further ado:

A guide to running TestNet for Mastercoin (A primer):

• Download and build the latest hash/tag of MasterCore from Github here.
• Run MasterCore in Testnet from the command-line, `./bitcoind -txindex -testnet`and allow it to sync to the furthest block (at time of writing, this is 262068). Command line output might result [2]
• Check if you have any Bitcoin Testnet addresses with ‘./bitcoind listaccounts’and then ‘./bitcoind getaccountaddress’. You can also generate a TestNetaddress using vanitygen (https://github.com/samr7/vanitygen). Testnet addresses start with an ‘m’, usually. Take note of this address.
•  Request some Testnet coins from the TestNet Faucet (https://tpfaucet.appspot.com/ – Please do not abuse!)
•  Add a file to ~/.bitcoin/testnet3/ called ‘mastercoin_balances.txt’.In this file enter your address, followed by your desired MSC amount, followed by a 0 [0]

You can send some MSC now using the following command (full list of commands are obtained using ‘./bitcoind help’):

`./bitcoind send_MP (your address) (their address) (amount-in-floating-point)`[1]

And that’s the quickstart guide for TestNet. There are numerous other commands suffixed with ‘_MP’ in the output of `bitcoind help`, feel free to test those out. Report bugs and difficulties to the repository directly if you locate any, and questions can be asked of the devs through either Github Issues, the mailing list, or directly through email.

[0] For example, the file contents would look like:

[1] Example of successful send on TestNet

[2] Example of debug output

We are very happy to announce that we have purchased our very own server on Fullnode.co, and are running a full Bitcoin node at mastercoin.fullnode.co AKA 97.107.131.17 (you can verify this by checking it on bitnodes.io).

Fullnode.co is an initiative to combat the problem of a declining number of Bitcoin nodes. It is a one-click Cloud service for setting up Bitcoin nodes, that anyone can use (by donating bitcoins) to “adopt” a full Bitcoin node and thus support the network’s health. We are proud to support and promote this initiative and encourage other Bitcoin organizations, companies and individuals to do the same.

The cost of adopting a fullnode is $10 a month, payable in Bitcoin of course.

We will soon be adding another full Bitcoin node to the network in the form of a Master Core node powering Omniwallet. However, regardless of any other servers we are running, we wanted to donate this little bit of extra compute, bandwidth, and P.R to the Fullnode effort in order to raise awareness.

So go ahead – adopt your own Fullnode! It really takes just a couple of minutes and only $10 per month.

P.S – it’s quite possible that the real, complete solution to the ‘Full Node Problem’ in Bitcoin requires some heavy thinking, and changing the monetization model, to properly incentives full nodes. Until that happens, we will be running a Fullnode.co.

Omniwallet is not built like most other web applications. We built Omni from the ground up with security in mind. First of all, as a rule omni never sends your password to the server. Your password is only used locally to unlock your private key(s). Speaking of keys, they are also not stored un-encrypted on the server.  https://github.com/mastercoin-MSC/omniwallet/blob/master/design/login.md

Continue reading here as we  go through our login and send transaction workflows with a technical eye.

-Shannon

Mastercoin Security.

Note: This article is out of date. We are still considering methods of rewarding Omni holders through upgraded functionality but have not yet decided upon the proper course of action.

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One question I hear over and over in our community is “Why will Mastercoins have value when there are so many coins in the Master Protocol ecosystem people could use?”

Up until now, our answer has always been a combination of 1) Preferential treatment for Mastercoin when using advanced features combined with 2) burning Mastercoin for anti-spam fees. Unfortunately, these answers always felt a bit . . . insufficient.

Today I am excited to share a MAJOR improvement to how we will increase the value of Mastercoin. When you use our advanced features (fundraisers, betting, distributed exchange, etc) you will never pay a fee when using Mastercoin. If you use another coin (for instance, a USDCoin pegged to the U.S. Dollar), a small fee (0.3%) will be deducted by the protocol. You might assume that the fee will go to the Mastercoin Foundation, but you would be wrong. The fee will be automatically sold on the distributed exchange . . . for Mastercoin . . . which will be BURNED.

That’s right. The protocol will automatically buy up Mastercoins using these fees, and destroy them forever.

Credit for this idea goes to Dominik (I first heard it from Ron, but Dom came up with it first), and the idea is pure, elegant, simple genius.

Take a moment to appreciate how genius this is:

1. Users don’t actually have to hold any Mastercoins. They can exclusively use other coins, and still be burning Mastercoins.
2. No extra weight in the bitcoin block chain (the fee, sale, and burning happens automatically in our system as we process transactions)
3. People have a small incentive to use Mastercoin, but Mastercoin holders benefit no matter which currency people use
4. We don’t have to encumber our features with Mastercoin favoritism
5. Mastercoin supply decreases the more other coins are used in our ecosystem
6. Once the metacoin distributed exchange (metadex) is live, this fee will automatically be charged to every other currency using advanced features in our ecosystem, including fundraisers accepting bitcoin!
7. The size of the fee (0.3%) is not a “magic number”. It can be changed in the future by a vote of MSC holders, hopefully using a voting feature in our protocol which will allow voting on parameters such as this.

Some transactions are exempt from the fee:

1. Simple sends (so you can still move your coins around for free).
2. Any advanced transaction which directly uses Mastercoin, for instance:
   1. Trading Mastercoin against MaidSafeCoin on the distributed exchange
   2. Accepting Mastercoins when crowd-funding
   3. Placing a bet denominated in Mastercoin

Examples of transactions subject to the fee:

1. Trading USDCoin against MaidSafeCoin on the distributed exchange
2. Coins sent to fundraisers in currencies other than Mastercoin (including bitcoin)
3. Placing bets denominated in USDCoin or MaidSafeCoin

Mastercoin has ALWAYS been designed to be “insanely deflationary”, and this is a HUGE step in that direction. So in the future, when you see people asking why Mastercoins will be valuable, please point them to this blog post!

You can follow progress on this change on github here: https://github.com/mastercoin-MSC/spec/issues/193#issuecomment-45377270

We have some wonkier text about why Mastercoin will have value in the future here (work in progress): https://github.com/mastercoin-MSC/spec/blob/master/WhyMastercoinsHaveValue.md

Speaking of being on fire, huge props to our team, which has been making blazing fast progress lately on a universal, cross-platform, exchange-friendly Mastercoin implementation. News coming about that soon.

Also, props to Zalgo for the b̹̫̞͛͗͑̚u̯̖ͨ̇ͮͅr̪̘̫͗n̝͈̠ͮ̆̏ï̝͆̌n̰̠̘̦̿ͭ͑͒g̫̦͇̲̣ͅ text, and photofunia for the burning Mastercoin symbol.

edit: Ron asked me to mention that some details of this mechanism are not considered final, and may change based on internal discussion and community feedback.

We just had a breakthrough this morning, which I just can’t keep to myself. We have SOLVED the exchange rate issue which so publicly marred the Maidsafe crowd-sale!

Future crowd-sales will be able to accept BTC, MSC, MaidSafeCoins, and any other currency in our ecosystem they wish to accept, simultaneously!! Furthermore, the exchange rate for each currency will be update-able throughout the duration of the crowd-sale. This means if you are getting too much of a currency, you can lower the exchange rate to discourage it’s use, including lowering the rate to zero.

The most beautiful thing is, this requires no changes to the format of the crowd-sale in our protocol (TX51). Instead, we are changing the rules and interpretation of TX51 to allow this type of usage. Cancelling a crowd-sale will affect all currencies being collected.

We’ve been discussing different ideas to improve crowd-sales for weeks, but this one hit me out of the blue this morning, and everyone I talked to on the Master Protocol team is extremely excited about it, and I wanted to share our excitement with all of you.

In hindsight, it seems so obvious – this is the way it should have always worked. With that in mind I would like to take this opportunity to publicly apologize to the wonderful folks at Maidsafe. We really let you down by having such a primitive crowd-sale mechanism in the first iteration, and we’re really, REALLY sorry for the pain, financial distress, and critical press you received as a result. And thanks for not throwing us under the bus. Your positive words about us are a lot of what is drawing so many other projects to use Master Protocol.

The best amends I can offer is to make your large stake of Mastercoin a fantastic investment, I commit myself to doing so, in every way I can. You guys rock. Future crowd-sales will have a MUCH better experience due to the lessons learned from your being our guinea pig.

We’re always making improvements to our spec, but this was a breakthrough I just had to share. 🙂

I am so SO excited to share with you our list of all crowd-sales we know of coming up.

I am proud to announce not one, not two, but NINE more crowd-sales coming in the next few months:

http://wiki.mastercoin.org/index.php/Upcoming_Crowdsales

The list is maintained by the community as a wiki so please be sure and add your own projects to the list.

Folks this is the benefit of having big projects building cool technology on top of your protocol. It attract other great projects to join the protocol.

The goal for the Master Protocol is to become the default choice for digital token issuance of this sort, and as more issuers use our system, more issuers will WANT to use our system, because that is where the money and liquidity will be.

If you are planning a major crowd-sale using the Master Protocol, add your project to the wiki page above – this is the official list, and investors will be looking at it. Don’t get left out!

 

Edit: Sweet! This list of upcoming crowd-sales was mentioned on Forbes.com! http://www.forbes.com/sites/kashmirhill/2014/06/03/mastercoin-maidsafe-crowdsale/ (see the very end of the article)

Edit2 (Legal Disclaimer): None of the upcoming crowd-sales mentioned above are owned or operated by us (the Mastercoin Foundation). They are all completely independent of us, and we have no control over any of these projects or how they may use our crowd-sale technology. If some project doing a crowd-sale on our platform offends some government entity, we can’t do anything to stop them. Please respect the laws of your jurisdiction when using our software!!

Also edited to remove some Mastercoin price speculation, which was apparently not kosher to our lawyers